The table below shows one of the most preferred trade exercises in your class, according toyour classmates' votes. Refer to it to answer the following question.Burrito40/hrBowl44/hrChipotleHot HeadBurritos36/hr42/hrChipotle has comparative advantage in(type either burritos or bowls).

International trade plays an important role for boosting the economic growth by providing new…

The table below shows one of the most preferred trade exercises in your class, according to your classmates votes. Refer to it to answer the following question. Burrito Bowl 44 hr Chipotle Hot Head Burritos 40 hr 36 hr 42 hr Chipotle has comparative advantage in (type either burrtos or bowls).

The table below shows one of the most preferred trade exercises in your class, according to your classmates votes. Refer to it to answer the following question. Burrito Bowl 44 hr Chipotle Hot Head Burritos 40 hr 36 hr 42 hr Chipotle has comparative advantage in (type either burrtos or bowls).

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Why is it important that the country or region with the lower opportunity cost produce the good? How would you use the concept of comparative advantage to argue for reducing restrictions on trade between countries?
The countries of Nickeltown and Lykesville each produce two goods: Ovens and Dishwashers. The table below lists the production for each good, for each country per year when each country uses half of their resources to produce each good. Country Production of Ovens Production of Dishwashers Nickeltown 105 Lykesville 147 What is the opportunity cost of producing 1 Ovens in Nickeltown Dishwashers 70 42 What is the opportunity cost of producing 1 Ovens in Lykesville Dishwashers ONickeltown OLykesville ONot enough information Which country has a comparative advantage in producing Ovens?
Suppose that country A and country B start trading; 1 unit of cotton is exchanged with 1 unit of wheat. Draw the trade line into their PPF.
Suppose that Spain and Greece both produce wine and olive oil. The following table shows combinations of the goods that each country can produce in a week (in thousands of liters). Spain Greece Wine Olive Oil Wine Olive Oil 0 16 0 30 1 12 1 24 2 8 2 18 3 4 3 12 4 0 4 6 -- -- 5 0 a. Who has a comparative advantage in producing wine? Who has a comparative advantage in producing olive oil? Explain b. Suppose that Spain is currently producing 1000 liters of wine and 12000 liters of olive oil per week and Greece is currently producing 3000 liters of wine and 12000 liters of olive oil per week. Demonstrate that Spain and Greece can both be better off if they specialise in producing only one good and then engage in trade.
Martha and Dave like to make identical tacos and cakes. The time it takes Martha and Dave to make tacos and cakes is given in the table below. Martha Dave Time to make a taco 10 minutes 15 minutes Time to make a cake 20 minutes 30 minutes Which person has an absolute advantage in the production of tacos, and which person has an absolute advantage in the production of cakes? Group of answer choices Martha has an absolute advantage in producing both goods. Dave has an absolute advantage in producing both goods. Neither Dave nor Martha has an absolute advantage at producing either good. Both Martha and Dave have an absolute advantage in producing both goods. Martha has an absolute advantage in tacos; Dave has an absolute advantage in cakes.
When a country has a comparative advantage in the production of a good, it means that it can produce this good at a lower opportunity cost than its trading partner. Then the country will specialize in the production of this good and trade it for other goods. The following graphs show the production possibilities frontiers (PPFs) for Glacier and Rainier. Both countries produce corn and basil, each initially (i.e., before specialization and trade) producing 18 million pounds of corn and 9 million pounds of basil, as indicated by the grey stars marked with the letter A. BASIL (Millions of pounds) 48 42 36 30 24 18 12 6 0 0 PPF 6 Glacier A 12 18 24 30 36 CORN (Millions of pounds) 42 48 ? BASIL (Millions of pounds) 48 42 36 30 24 18 12 6 0 0 PPF I + 6 Rainier 12 18 24 30 36 CORN (Millions of pounds) I 42 48 (?) Glacier has a comparative advantage in the production of while Rainier has a comparative advantage in the production of Suppose that Glacier and Rainier specialize in the production…
Why is comparative advantage more important than absolute advantage in determining whether trade is beneficial?
Olivia and Tura are sisters, whose parents require them to do four hours of househoid chores per week. Both children can perfom two chores walking the family dog and watering the household planta The following describe each child's productivity Production per Hour of Work Child of Dog Walks 4 of Plants Watered. Olivia Tara Please answer each of the following questions, indicating the question numbers in your answer Which child, if any, has absolute advantage in dog walks? Which child if any has absolute advantage in watering plants? (Olivia, Tara, Both, Neither) has absolute advantage in dog walks; (Olivia, Tara, Both, Neither) has absolute advantage in watering plants.
Which trade advantage is used more commonly among economists? absolute advantage comparative advantage neither